Accident claims plummet, baffling insurers

[jake75]

American drivers are reporting fewer crashes to their insurance companies than ever before, and nobody knows precisely why.Fewer claims mean record profits for auto insurers like Allstate Corp. and State Farm Insurance Cos. The unprecedented decline in auto claims — a four-year, 15% drop — has allowed the insurers to reap huge earnings from underwriting, without raising premiums.For full story see http://chicagobusiness.com/cgi...21534

[ZubenElGenubi]

Wow...great article. An insurance "who-isn't-dunnit", if you will.Two paragraphs struck me as important:Quote, originally posted by article »The drop in claims doesn't necessarily reflect a decline in accidents; it simply shows that fewer drivers are filing claims after car wrecks. Industry officials are reluctant to discuss this notion, but it seems to be supported by federal data on highway crashes. Quote, originally posted by article »Also, in its most recent annual report, Allstate says higher deductibles seem to be prompting policy holders not to file claims. Factors explaining lower claims, the report says, include "an increase in the level of policy deductibles chosen by policy holders, a decrease in policy holder submission of claims for minor losses" and more sophisticated underwriting models.I would wager that the steady increase in deductibles has made a good number of potential claims go away. Also, some persons may still be concerned that posting too many claims will adversely affect their premiums.